Question
The following data related to two mutually exclusive projects are given. Which of the following statement is true about the incremental rate of return? Alternative
The following data related to two mutually exclusive projects are given. Which of the following statement is true about the incremental rate of return?
| Alternative | Initial Investment | ROR |
| A | $40,000 | 23% |
| B | $10,000 | 18% |
answer is The ROR is greater than 23% ( please show how did they get the answer )
A. The RoR is less than 23%
B. The RoR is greater than 23%
C. The RoR is between 18% and 23%
D. Insufficient data
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Financial Accounting Tools for business decision making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
6th Edition
978-1119191674, 047053477X, 111919167X, 978-0470534779
